Noida authority seals two M3M construction sites for violations of tender rules

Nearly a month after the allotment cancellation, the Noida authority on Monday sealed M3M’s construction site in Sector 72 and officials said a second site of the realtor in Sector 94 will be sealed on Tuesday.

The move comes after the state government cancelled the allotment of two land parcels to M3M Group on the grounds that the allotment through e-tendering was done in violation of the laid down rules.

A team of the authority’s civil department, along with the police, reached the site at 4pm with earthmovers and dumper and sealed the main gate of the property. Even after the cancellation of allotment by the Uttar Pradesh government, authority officials said M3M was carrying out construction at the site as the boundary is covered by tall iron sheets.

“We have sealed the Sector 72 site and the second site in Sector 94 will be sealed on Tuesday. We had to seal the site right after the cancellation of allotment by the state government. But the M3M Group representative came to us and sought some time to get some relief. But when they did not get any relief from the government, the authority sealed the site as per the rules,” said Lokesh M, chief executive officer, Noida authority.

The authority has also directed M3M Group to shut the sales office so as to stop the realtor from selling commercial or residential space in the project, said officials.

M3M officials did not respond to calls or emails seeking their comment on the matter on Monday.

On February 28, 2024, activist Roop Singh filed a complaint alleging that the terms of brochures were violated during the allotment of plots, and that the e-bidding process did not follow the laid down rule. Following the complaint, the state government directed the Noida authority additional chief executive officer to compile a report on the issue. On the basis of the complaint and ACEO’s report, the state government on May 10, 2024, issued a plot cancellation notice to M3M.

The Uttar Pradesh Infrastructure and Industrial Development Department’s principal secretary Anil Kumar Sagar said the Noida authority kept the reserve price of the plot in Sector 94 at ₹827.35 crore and that of the plot in Sector 72 at ₹176.48 crore.

“These plots were allotted at rates that were ₹5 lakh more than the reserve price to the two subsidiaries of M3M Group, Lavish Buildmart Private Limited in Sector 94, and Skyline Propcon Private Limited in Sector 72. It means that there was no competition against the norms. The aim of the e-tender bidding is to allot a plot on a competitive bid but that did not happen in these two allotments. And the rule of net worth, insolvency and turnover was not followed. Even the Comptroller and Auditor General of India in August 2020 warned Noida authority to end ambiguity in tender conditions. But in this scheme launched in 2022, the Noida authority did not end the ambiguous terms of allotment,” said the cancellation letter sent by the Noida authority.